arm Machinery stock currently sells for $54.80 per share. The market required return is 14.2 percent while the company maintains a constant 3 percent growth rate in dividends. What was the most recent annual dividend per share paid on this stock

$5.96

Explanation:

Using the Gordon growth model, this can be calculated.

Assume the most recent dividend is x.

Gordon growth model;

Price of stock = (Most recent dividend * ( 1 + growth)) / (Required return - growth rate)

54.80 = (x * (1 + 3%)) / (14.2% - 3%)

54.80 = 1.03x / 11.2%

1.03x = 54.80 * 11.2%

x = (54.80 * 11.2%) / 1.03

x = $5.96

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; planning;